Gold Hits New Record as Silver Tops $91.50 per Ounce
U.S. gold futures for February delivery gained 0.8% to $4,640.90. Spot silver surged 4.2% to $91.59 per ounce, crossing the $90 threshold.
Quick overview
- Gold and silver are reaching record highs as safe-haven assets following lower-than-expected U.S. inflation data.
- Spot gold hit an all-time high of $4,639.42 per ounce, while silver surged past $90 for the first time, reaching $91.59.
- U.S. inflation data showed a year-over-year increase of 2.6%, leading to expectations of interest rate cuts.
- Analysts predict gold could exceed $5,000 per ounce by mid-2026, with silver potentially aiming for the $100 mark.
Gold and silver are strengthening their role as safe-haven assets, hitting fresh record highs after U.S. inflation data came in lower than expected.
Gold rose on Wednesday to a new all-time high, while silver broke above the unprecedented $90 mark, as slightly softer U.S. inflation data reinforced bets on interest rate cuts.
Spot gold climbed 1% to $4,633.40 per ounce after touching a record high of $4,639.42 earlier in the session. U.S. gold futures for February delivery gained 0.8% to $4,640.90. Spot silver surged 4.2% to $91.59 per ounce, crossing the $90 threshold for the first time after soaring nearly 27% so far this year.
U.S. CPI data showed inflation remained relatively contained at 2.6% year over year, while markets now await an equally benign Producer Price Index (PPI) reading to sustain expectations of further monetary policy easing. Core CPI rose 0.2% month over month and 2.6% year over year in December, below analysts’ expectations of 0.3% and 2.7%, respectively. Core PPI data for December are set to be released later on Wednesday.
Trump’s reaction to inflation data
U.S. President Donald Trump welcomed the inflation figures, renewing his pressure on Federal Reserve Chair Jerome Powell to cut interest rates “significantly.”
Global central bank leaders and top Wall Street bank CEOs publicly rallied behind Powell on Tuesday, after reports that the Trump administration is investigating him sparked criticism from former Fed chairs as well. Analysts note that concerns over the Fed’s independence and confidence in U.S. assets have added to safe-haven demand for gold.
Investors are currently pricing in two 25-basis-point rate cuts this year, with the first expected in June. Non-yielding assets such as gold tend to perform well in low-rate environments and during periods of geopolitical or economic uncertainty. ANZ said in a note on Wednesday that it expects gold to trade above $5,000 per ounce in the first half of 2026.
As for silver, the next major psychological level is $100, and the metal is likely to post double-digit percentage gains this year, according to Brian Lan, managing director of GoldSilver Central. Meanwhile, spot platinum jumped 4% to $2,415.95 per ounce, its highest level in a week. It last hit a record of $2,478.50 on December 29. Palladium rose 3.3% to $1,899.44 per ounce.
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